Green dreams
The rise, fall and resurgence of Eco-Actives
Last year's headline revealed a surprising twist for the Eco-Actives consumer segment. After three years of consistent growth, their numbers dropped, a development we attributed to concerns over widespread inflation and the Ukraine conflict dominating the headlines. This shift in focus, accompanied by rising gas and fuel prices, temporarily eclipsed the previously steady rise in eco-conscious respondents.
The return of Eco-Actives this year is good news for brands that have invested in sustainability initiatives, as Eco-Actives represent a significant portion of spending in the FMCG sector. A like-for-like comparison of countries shows Eco-Actives at 22% of the population, globally, up from 18%. Eco-Considerers, a group ripe for conversion to Eco-Actives, are also back this year.
So, if Eco-Actives are back this year, what does this mean? It would be easy for brands to think shifting away from offerings targeted at Eco-Actives, especially in the face of economic challenges and rising costs of living, is the right approach. Indeed, common thinking — and realities — are that more eco-friendly products tend to cost more. And this is generally true. But that doesn’t mean they should be abandoned in the face of rising pressures on households.
Eco-Actives represent a substantial market, accounting for $456 billion in spending, globally.
Doing so could be a mistake. Eco-Actives represent 20% of the total population, accounting for $456 billion in spending, globally. Moreover, projections indicate that the Eco-Actives segment will continue to grow in size and could be worth $1 trillion by 2028.
The resurgence of Eco-Actives is not confined to specific demographics or income levels, but we know asking people to “trade up” to more eco-friendly products will be difficult when 43% told us it would be harder to act sustainably due to financial or social constraints. Interestingly, this number hasn’t changed year-over-year meaning it’s challenge that persists no matter what the economic climate.
Considerations
It’s also worth recognising people are demanding more of brands. They want to trust the brands they use. Consequently, brands should view investment in sustainability as an investment in gaining trust, denoting quality, health, and taste. Eco-Actives consistently over-trade on eco products, with brands offering non-plastic packaging, local credentials, natural ingredients, and fairtrade practices performing best. By understanding the needs and desires of Eco-Actives and offering sustainable options that align with their values, brands can further tap into a growing and lucrative market segment.
The trend will continue to rise, reflecting growing eco-consciousness.
The trend will plateau, stabilising at its current level.
The trend will decline, losing momentum over time.
I'm not sure about the future of this trend.
